Kawaguchi Chemical Industry Co., Ltd
4361・Standard Market・Chemicals
Chemical Industrial Chemicals Business
Kawaguchi Chemical's core business. Manufactures and sells rubber chemicals, resin chemicals, intermediates, etc., based on organic synthesis technology.
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (cumulative first half) | ¥4,296 million | ¥4,295 million | — |
| Segment profit (operating profit) (cumulative first half) | ¥288 million | ¥184 million | ↑ |
| Sales (full year, prior year actual) | ¥8,776 million (FY2025 (ended November 2025) actual) | — | — |
| Segment profit (full year, prior year actual) | ¥396 million (FY2025 (ended November 2025) actual) | — | — |
Business Details
Composed of four divisions: Rubber Chemicals (vulcanization accelerators, antioxidants, etc.), Resin Chemicals (antioxidants, polymerization inhibitors, etc.), Intermediates (pharmaceuticals, agrochemicals, dyes and pigments), and Others (Functional Chemicals, Environmental Chemicals, etc.). Primarily manufactures domestically while also exporting and expanding overseas, with operations extending into the Chinese market through its consolidated subsidiary Kaikei Ai (Shanghai) Trading Co., Ltd. Segment sales account for approximately 99% of consolidated sales, making it the core business. The company is strengthening development of high-value-added products, including specialty contract synthesis for electronic materials and pharmaceutical/agrochemical intermediates.
Recent Overview
While sales were flat, operating profit improved significantly, up 57.1% year on year, due to cost reductions and stronger overseas expansion.
In the first half of FY2026 (ending November 2026) (December 2025 to May 2026), sales in the Chemical Industrial Chemicals Business were ¥4,296 million (up 0.0% year on year), remaining flat, while segment profit (operating profit) improved significantly to ¥288 million (up 57.1% year on year). The main driver of the profit improvement was a reduction in cost of sales (from ¥3,513 million in the same period of the previous year to ¥3,412 million in the current period). Share expansion and recovery through aggressive overseas market expansion, as well as the effect of yen depreciation, also boosted profit. Resin Chemicals (+7.7%) performed well, while Rubber Chemicals (-0.6%), Intermediates (-3.6%), and Others (-0.5%) fell below the same period of the previous year.
Key Products
Growth Drivers
- Expanding demand for specialty contract synthesis products for electronic materials (semiconductor materials) (driving Resin Chemicals and the Others division)
- Share expansion/recovery through aggressive overseas market development and profit boost from yen depreciation effects
- Responding to demand for organic compounds for pharmaceutical and agrochemical applications and strengthening development of high-value-added products
- Increased sales through rapid response to expanding customer demand for environmental chemicals
- Growth investment in the final year of the medium-term management plan "ACCEL2026" and bridging to the next medium-term plan
Risks
- Risk of continued weak domestic and overseas demand, mainly for general-purpose Rubber Chemicals and Intermediates products
- Price pressure on specialty tire-related products and Resin Chemicals due to intensifying competition from inexpensive overseas products (particularly from Asia)
- Risk of dependence on fluctuations in automobile industry production (stagnant external demand due to the impact of US tariff policy)
- Risk of raw material (e.g., naphtha) supply shortages and price increases due to worsening conditions in the Middle East (de facto closure of the Strait of Hormuz)
- Risk of unstable fluctuations in raw material prices and foreign exchange risk
- Risk of sales concentration with a major customer, Yamada Kasei Co., Ltd. (approximately 20% of sales)
Last updated: February 20, 2026